Cheaper domestic services from July

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The government's proposal for tax relief for domestic services was submitted to the Riksdag on Wednesday. The cost of services such as cleaning, laundry and child-minding is set to fall by 50 percent from July 1st this year.

Under the proposed scheme, half of the labour costs for domestic services may be reclaimed in the form of a tax deduction.

The proposals were initially put forward in the governing Alliance's election manifesto, although the detailed plans announced last month contained new features. The government has extended the tax breaks to cover costs associated with paying someone to take children to and from extra-curricular activities.

Only services carried out in or near the home will qualify for tax breaks. This means that clothes cleaned at home will be covered, but not dry cleaning. Paying a babysitter to take children to sports games will be covered, but taxis will not.

Those carrying out the services must be either self-employed or work for a registered company.

An individual's accumulated tax relief for domestic services may not exceeded 50,000 kronor per year.

People will be able to make the reduction at source, meaning that they won't have to wait for their final tax declaration to benefit from the tax relief.

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